Portugal Property Sales Rise at Fastest Level for 5 Years

Thu 29 Oct 2015

Portugal real estate sales have risen at their fastest monthly pace for since 2010 and new buyer inquiries are at a six-month peak, according to recent real estate market data and a report published on www.opp.today.

September’s 2015 RICS/Ci Portuguese Housing Market Survey (PHMS) shows that sales volumes picked up at the fastest monthly pace since the survey’s inception five years ago – and agents are confident that the market will rise even further over the coming months.

RICS Chief Economist, Simon Rubinsohn, says, “The September results show the ongoing improvement in real estate market activity is gathering steam. This is being driven by consumer confidence toward making major purchases reaching a post-crisis high as the economic backdrop continues to brighten.”

The opinion of Ricardo Guimarães, Director of Ci is a little more cautious. Mr Guimarães says, “The real estate market recovery is strengthening and this is clearly a result of the improved sentiment reported by agents. Bank lending is increasing, demand is rising and confidence is being reinforced. Nevertheless, some agents still mention that this is a fragile balance, due to unemployment and uncertainty, while market sentiment still varies across locations.”

In the lettings market, solid tenant demand growth and falling landlord instructions is bringing a modest rental upturn.

In the sales market new buyer inquiries show demand increased at the quickest pace in six months and inquiries have now risen monthly since July 2013.

“According to the survey, house prices have now increased for ten consecutive months following nearly four years of persistent decline. Looking ahead, price expectations remain firmly in positive territory, across all regions, at both the three and twelve month horizons,” says the report.

The national confidence indicator (a composite measure of near-term price and sales expectations) increased to +42, up 10 on the previous survey – the second highest reading on record.

In the lettings market, tenant demand increased at a robust pace once more, while new landlord instructions fell sharply.

Rents edged up again albeit very marginally while expectations point to a continuation of this trend over the coming three months.

The PHMS provides a qualitative monthly assessment of the sales and lettings sectors. It is based on around 100 regular responses and contains a regional breakdown covering Lisbon, Porto and the Algarve.

 

Read the original article here.

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